TNAG-1233-FCO40-1546-Future-of-Hong-Kong-1983 — Page 80

CONFIDENTIAL

Mr Walker

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TWY 110.

1 2 JAN 1983

DESK OFFIC INDEX

PA

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AMERICAN VIEWS ON HONG KONG: THE PRECEDENT

OF THE PANAMA CANAL NEGOTIATIONS

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1. We spoke at a morning meeting a fortnight ago about the letter I had just had from the Ambassador in Washington, which I now attach together with my reply.

2. I should be grateful if Research Department could put together a couple of paragraphs on the precedent of the Panama Canal negotiations for possible use by Sir Oliver Wright,

23 December 1982

Astmald

A E Donald

Mr Donald

1.

I now attach a note which I hope you will find suitable. This incorporates points made by Mr Penney of American Section, Research Department.

2.

The following general comment by Mr Penney on the Panama Canal treaties may also be of interest.

One of the most surprising things about the episode was the unprecedented realism shown by the US (despite Reaganite opposition) and the successful American ploy to give the impression that the Panamanians had made most of the running in their efforts to 'recuperate sovereignty'. It must also be said that the US probably believes the present Canal (as it stands) will be virtually obsolete anyway by the end of the century. Nevertheless, a magnanimous US gesture at relatively small economic cost.

CONFIDENTIAL

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